Question: Although bond principal is technically not repaid until maturity, sinking funds reduce bondholder risk by requiring the borrower to make periodic payments to a bank

Although bond principal is technically not repaid until maturity, sinking funds reduce bondholder risk by requiring the borrower to make periodic payments to a bank for principal retirement. The same can be accomplished by:

Answer

		randomly calling in bonds for earlier retirement
		issuing serial bonds which spread the principal repayment over a number of years
		either of the above
		none of the above

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